US domestic transaction prices for hot dipped galvanized (HDG) have firmed slightly since our last report a week ago, with the inch-by-inch creep toward mill offers still the trend apparent.
The firming of spot prices does not come as a surprise as domestic mills have held their ground in terms of asking prices; raw materials continue going up and production costs are higher. And without any sort of influx of imports, buyers needing galvanized coils will have to go domestic. The clincher, though, is the question as to how much higher mills' asking prices will climb in the next few weeks, when new scrap and iron ore prices are expected to be announced. Question number two involves if, or how long it will take, for them to be absorbed. So for now, although mills' asking prices haven't moved, that's not to say this isn't the quiet before the storm, as strong winds of pricing change may soon be back upon us.
Most mills' asking prices for HDG have remained at approximately $41.00 cwt. ($904/mt or $820/nt) ex-mill, for now, yet transaction prices, while still falling short, have begun to firm, with the range having narrowed approximately $1.00 cwt. ($22/mt or $20/nt). Most domestic HDG base spot prices are now being seen in the approximate range of $39.00 cwt. to $40.00 cwt. ($860/mt to $882/mt or $780/nt to $800/nt) ex-Midwest mills. Domestic offerings for 0.019" x 48" G90 (0.48 mm x 1.219 m) have also narrowed in range by about $1.00 cwt. ($22/mt or $20/nt) and are now seen at approximately $50.00 cwt. to $51.00 cwt. ($1,102/mt to $1,124/mt or $1,000/nt to $1,120/nt). Meanwhile, spot offers for 0.012" x 40.875" G30 (0.30 mm x 1.04 m) have increased by approximately $0.50 cwt. ($11/mt or $10/nt), and are now being reported in the approximately range of $50.50 cwt. to $51.50 cwt. ($1,113/mt to $1,135/mt or $1,010/nt to $1,030/nt), ex-Midwest mills.As far as domestic Galvalume coil goes, spot pricing for base sizes have remained in the approximate range of $38.00 cwt. to $40.00 cwt. ($838/mt to $882/mt or $760/nt to $800/nt) ex-Midwest mills, with the general consensus that the market for Galvalume is the least exciting player among products under the flats umbrella. Offers for 0.019" x 41.5625" Gr80/AZ55 have also trended sideways, and continue to be seen at approximately $49.00 cwt. to $50.00 cwt. ($1,080/mt to $1,102/mt or $980/nt to $1,000/nt) ex-Midwest mills.
In terms of imports, there really aren't any offers that are generating much interest from traders. Offers of weeks past have either been booked or have expired altogether, and until the raw materials price increases are announced, imports are not expected to gain much acceptance. It is, however, expected that offers out of Southeast Asia will reemerge once the raw materials situation becomes more clear.
Mexico, though, is still holding strong with their offers on 0.019" x 41.4625" Gr80/AZ55 still being seen in the approximate range of $50.00 cwt. to $51.00 cwt. ($1,102/mt to $1,124/mt or $1,000/nt to $1,020/nt) delivered to the border, although Mexican's are also expected to go up with their prices in the coming weeks.